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Calling all oil workers or accountants living in Spain

Calling all oil workers or accountants living in Spain

Old Jul 4th 2014, 8:43 am
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Default Calling all oil workers or accountants living in Spain

Hi guys,

I am looking to move to Spain in January for the notable tax break I will get there. Does anyone have the definitive way of avoiding income tax? I have been told to and not to get an NIE, for and against residencia, to sell everything in the uk or keep it and rent it out, to use a uk accountant or Spanish one. In short I am confused, I work in Ghana, I pay income tax in Ghana and I will be out of the country for more than 183 days a year, my wife and son will be full time Spanish residents. Any help would be very gratefully received.

Mark
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Old Jul 4th 2014, 8:53 am
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Default Re: Calling all oil workers or accountants living in Spain

Originally Posted by marksleep
Hi guys,

I am looking to move to Spain in January for the notable tax break I will get there. Does anyone have the definitive way of avoiding income tax? I have been told to and not to get an NIE, for and against residencia, to sell everything in the uk or keep it and rent it out, to use a uk accountant or Spanish one. In short I am confused, I work in Ghana, I pay income tax in Ghana and I will be out of the country for more than 183 days a year, my wife and son will be full time Spanish residents. Any help would be very gratefully received.

Mark
I suspect that, because your family home will be in Spain, you will be classed as tax resident for Spanish tax purposes, and have to pay tax on your WORLDWIDE income, if there is a double taxation agreement with Ghana you would be able to offset this aginst any tax due to Spain, if not, then you will have to pay tax again. You need a tax accountant well versed in the UK, Spainsh and Ghanaian tax systems, if one even exists. Spain, being almost bankrupt, has introduced more stringent tax rules and laws in the past few years to try and catch people moving to Spain to avoid taxes elsewhere.
I really suspect that having your family in Spain they will class you as tax resident at least, and the period for that is only 90 days in a year, not the 183 days you have quoted.
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Old Jul 4th 2014, 9:13 am
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Default Re: Calling all oil workers or accountants living in Spain

Originally Posted by mikelincs
I really suspect that having your family in Spain they will class you as tax resident at least, and the period for that is only 90 days in a year, not the 183 days you have quoted.
I'm sorry, but it is 183 days of tax residency. 90 days is the time in which you must register as a EU foreigner in Spain and has nothing to do with your tax residency.
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Old Jul 4th 2014, 9:16 am
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Default Re: Calling all oil workers or accountants living in Spain

Originally Posted by Fred James
I'm sorry, but it is 183 days of tax residency. 90 days is the time in which you must register as a EU foreigner in Spain and has nothing to do with your tax residency.
But, with a family home in Spain where his wife and children live, would that not be classed as resident?
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Old Jul 4th 2014, 9:41 am
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Default Re: Calling all oil workers or accountants living in Spain

Yes, if his family was resident then he "could" be classed as tax resident even if he did not meet the 183 day rule.

However, as far as the family is concerned, they would have to be tax resident, not just on the register. It all revolves around the concept of the "habitual home" and for it to be classed as that you would have to spend the majority of your time there - ie over 183 days.
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Old Jul 4th 2014, 1:13 pm
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Default Re: Calling all oil workers or accountants living in Spain

Originally Posted by Fred James
I'm sorry, but it is 183 days of tax residency. 90 days is the time in which you must register as a EU foreigner in Spain and has nothing to do with your tax residency.
Does this mean that after 90 days (or perhaps even before) you can apply for residencia but if you make sure that you don't stay for more than 183 days in any calendar year then you don't become a tax resident? Or am I confusing myself?

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Old Jul 4th 2014, 1:14 pm
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Default Re: Calling all oil workers or accountants living in Spain

Originally Posted by mikelincs
But, with a family home in Spain where his wife and children live, would that not be classed as resident?
How could they prove he lived there too? If he lives & works mostly in Ghana, it'd be pretty tough to prove he's a resident in Spain. Just because your partner & child live somewhere, doesnt mean youre classed as living there too. Just ask most of the estate near me in Stoke I'd say its just his wife & child. But I know nothing....
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Old Jul 4th 2014, 2:11 pm
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Default Re: Calling all oil workers or accountants living in Spain

They don't need to prove anything. The Spanish tax law says that if the center of your economic interests or your family live in Spain you will be classed as being tax resident.

As for days of residency, if that becomes an issue, it is up to you to prove that you were not in Spain.
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Old Jul 5th 2014, 9:21 pm
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Default Re: Calling all oil workers or accountants living in Spain

Originally Posted by Fred James
They don't need to prove anything. The Spanish tax law says that if the center of your economic interests or your family live in Spain you will be classed as being tax resident.

As for days of residency, if that becomes an issue, it is up to you to prove that you were not in Spain.
As a lawyer the interpretation of centre of economic interests has caused Govt's taxpayers the Courts and HMRC huge problems. It is simply a reasonable test. If wife and children spend most of the year in Spain and then are visited by their Husband and Father it is an arguable case. But local interpretation can vary from international law.

Once in England a French national came back to watch racing at Ascot and was in the middle of a difficult divorce to a UK resident. He loved racing and came back often. Once at Ascot it was once to many for he had a writ served on him and the Courts ruled that his propensity to come back and forth to watch racing proved that the UK was the centre of economic interests.

the OP needs and I stress needs good sound professional advice. If the Rolling Stones can do it then the OP can equally sort things out. But as Fred rightly indicates Spain is bankrupt or let us say needs money so that desire may well overturn conventional understandings as to centres of economic interests.
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